2 year plan to lower taxes?

[freedomseeker]

Canadian, have a decent stock investment portfolio, but also a private sector pension. I want to become a non resident of Canada to save taxes on my investments, but if I move directly to a non tax or residential tax location like Dubai or Paraguay my pension will be taxed at almost double compared to a country with a tax treaty.

So I was thinking, (say as a example) I was to take advantage of the Portugal D7 visa and become a tax resident of Portugal (tax treaty country) for a year while qualifiying to become a non resident of Canada. My pension is deposited in my wise account monthly and sent overseas to a bank in portugal or perhaps a channel island bank. My IBKR account is notified that my tax residence is now Portugal.

Now if after another year I obtain residency in Dubai or Paraguay, I notify IBKR, and wise (do I have to notify wise?), Do they report back to Canada or would it be now be a matter between Portugal and Dubai/Paraguay?

I am trying to find a way to become a resident of a tax efficient jurisdiction for my stock investments with out raising my taxes on my other revenue stream (pension).

Thoughts?

Ideas?

Thanks.

 

[Martin Everson]

freedomseeker said:
(do I have to notify wise?)
Click to expand...

Yes

freedomseeker said:
Do they report back to Canada or would it be now be a matter between Portugal and Dubai/Paraguay?
Click to expand...

They wont report back (if you mean reporting under CRS) unless you give them reason to do so via indicia.

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[freedomseeker]

Martin Everson said:
Yes



They wont report back (if you mean reporting under CRS) unless you give them reason to do so via indicia.
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Thank you for the response.

Then perhaps would it be better to have the pension go to my Canadian bank account (which i am allowed to keep as a non resident as long as it isn't a daily use account) then transfer the funds to wise. (would that be enough steps to not trigger notifications if i change residency a year after severing my ties to Canada?

How does the system work anyways? would the reporting just got from the last place of residency to the new? or when ever there is a change is the country of citizenship notified?

 

[Martin Everson]

freedomseeker said:
Then perhaps would it be better to have the pension go to my Canadian bank account (which i am allowed to keep as a non resident as long as it isn't a daily use account) then transfer the funds to wise. (would that be enough steps to not trigger notifications if i change residency a year after severing my ties to Canada?
Click to expand...

Wise will not report to Canada unless their is indicia.

freedomseeker said:
How does the system work anyways? would the reporting just got from the last place of residency to the new? or when ever there is a change is the country of citizenship notified?
Click to expand...

There is no notification sent to home country under CRS unless your indicia is involved. Also banks don't just go informing your passport citizenship country unless your an American and that is done under FATCA.

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Please note my posts should not be taken as financial or tax advice. Please seek professional advice in that respect.

 

[AlexGE]

freedomseeker said:
Canadian, have a decent stock investment portfolio, but also a private sector pension. I want to become a non resident of Canada to save taxes on my investments, but if I move directly to a non tax or residential tax location like Dubai or Paraguay my pension will be taxed at almost double compared to a country with a tax treaty.

So I was thinking, (say as a example) I was to take advantage of the Portugal D7 visa and become a tax resident of Portugal (tax treaty country) for a year while qualifiying to become a non resident of Canada. My pension is deposited in my wise account monthly and sent overseas to a bank in portugal or perhaps a channel island bank. My IBKR account is notified that my tax residence is now Portugal.

Now if after another year I obtain residency in Dubai or Paraguay, I notify IBKR, and wise (do I have to notify wise?), Do they report back to Canada or would it be now be a matter between Portugal and Dubai/Paraguay?

I am trying to find a way to become a resident of a tax efficient jurisdiction for my stock investments with out raising my taxes on my other revenue stream (pension).

Thoughts?

Ideas?

Thanks.
Click to expand...

If you are not going to cash out the investment portfolio - what's the point?

Let's say you keep the portfolio, you only receive dividends (in cash or DRIP) - Canada has 50% discounted taxation for dividends.


If you cash out - Canada has an "exit tax", you have to do "a deemed disposition" of your portfolio when you become a non-resident.